Expense Reduction Services and the Role of Cost Management Consultants

Expense Reduction Services and the Role of Cost Management Consultants

Organizations of the modern age are in grave need of reduction in their expenses. This process is vital for non stagnation of the enterprise. Consistent profits would do no good to the owners. Thus amendments in the financial domain of the organization are compulsory. Reducing the expenditure on primary investments lightens the pressure on cash flow through the organization's framework. Leaving out Cost Reduction service from the business strategies can result in a state of developed inertia in the firm. In this condition the profits as well as progress are hindered. The organization may face acute deficiency of resources in the later years of their business schedule.

Thriving organizations in the global market endorse the employment of long term as well as short term decrements in expenditure. Credibility and profitability of an enterprise rely solely on effective and proper costs reduction techniques. It is a pretty tough task to manage and differentiate investments in various sectors of the organization. However, professionals implement the following procedures to ensure feasibility of the financial operations and augmented profitability of the firm.

1. Interaction with several clients empowers the expense managers to craft fresh experiments for the organization's betterment.

2. Categorizing the sectors of investment allows cost decrement personnel to be specific regarding investment pathways.

3. Analyzing the present operating conditions of the organization and instant cost saving processes to avail quick cash.

4. Synchronizing with both ends i.e. the suppliers and the customers. Vivid detail of raw materials obtained from suppliers and valid purchase processes of consumers are maintained by proficient expense reduction consultants.

5. Research on previous instances of success of various organizations and adopting reviews on prevalent organizations at present is done by the expense management professionals. They even design progress reports for the future based on statistics of the present investments.

6. Provision of conclusions and inferences regarding processes to implement effective cost moderation.
Descriptive information of cost of supplies, overhead expenditures and contracts needs to be updated consistently. In a way, this method helps in frictionless administration. Business operations need to be looked upon and revised strictly throughout the hierarchy of the enterprise. Cost management consultants facilitate all necessary answers to your cost management issues. Some of the characteristics of an efficient consultant in cost reduction are:

• The operations of cost reduction consultants are objective by nature. Objective analysis of a particular business firm is done by these professionals.

• They streamline the flow of expenses and widen the prospects and reach of your business.

• Past history of organization's progress is accounted for and required amendments are implied to add up to the profits of the organization.

• Costs reduction personnel excel at ensuring synchronization of the organization's goals with its corporate aptitude.

Cost managers hired by organizations strive to work for short listing potential suppliers. Fresh sources of raw materials for your industry can be tracked down with the assistance of expense analysts. The services of efficient cost saving methods and individuals can be afforded at nominal rates. Saving a good figure of capital today through expenditure reduction can hoist your organization to decisive positions.

Major Australian Cities Show Big Surge in Home Prices

Major Australian Cities Show Big Surge in Home Prices

Home prices in Sydney, Melbourne and Brisbane have spiked up amid a backdrop of Australians not wanting to take on any kind of debts, a report on ABC stated. It added that the increase in housing prices may have been fueled by Chinese investors as capital cities showed a jump of 1.3 per cent last month while Sydney had a surge of 2.4 per cent.

There are various reasons being pointed out as the basis for the increase in housing prices. Some of the reasons, according to the report, are the low official interest rate, the increased bank discounting and lower lending standards. Chinese investors are also widely believed to be the reason for the growth in housing prices.

The housing boom is not slowing down as Australian capital cities experienced a 1.3 per cent surge in housing prices in October. However, the report argued that the gains in the housing sector are not balanced since it was only the three large cities that only reflected a significant surge.

In Sydney, the price of homes rose by 2.4 per cent while a 1.2 per cent increase was recorded in Melbourne and 1.4 per cent in Brisbane.

For months, the housing prices in both Sydney and Melbourne have been surging up. Brisbane, the report noted, is slowly catching up to the two. The Harbour City is a major contributor to the growth.

One of the major reasons why growth is increasingly obvious, significant and consistent in these large cities is because of the competition between banks as they try to outdo each other in a bid to attract more borrowers.

Macquarie Bank, for example, has been aggressive in the home loans market. Consequently, this will create more competition, especially among Australia's big four banks. And although mortgage rates are lower now, consumers will be attracted more by the competitive prices on fixed rate loans, which have dropped to new heights.

And although the competition may attract growth in terms of housing prices, it does lower lending standards, CLSA banking analyst Brian Johnson commented. He added that banks now are offering package discounts,cash rebates and increased broker commissions.

Graham Andersen, another analyst, stated that the high prices in housing wouldn't be possible if the lending standards didn't fall down because of the competition. Stiff standards and requirements would have not attracted borrowers, he noted.

The aggressiveness of the banks has played well for the housing sector, Mr.Andersen added.

Free Financial Forms Readily Available For Those Who Need Them

Free Financial Forms Readily Available For Those Who Need Them

In today's bustling economy, individuals and businesses alike are making financial transactions every second. A financial form is a basic requirement for any transfer of funds or financial agreement. This can range anywhere from a hotel receipt that will later be used to prove business expenditures, to a complex branch of paperwork in order to move forward in a corporate merger. These financial documents allow companies to manage their finances in compliance with state and federal regulations. However, with all these connections going on, people may be wondering what forms they need and how much they need to pay for them. It should be known that there are free financial forms readily available on the Internet for those who need them.

There are reputable accounting service companies that make financial forms available for no cost online. These forms have a broad range of uses and cover a wide array of prospective clients. Companies that offer free finance forms also offer financial advising services to meet all of your company's needs. You may find yourself needing further assistance with the documents, and an experienced accounting services firm can help you with these and other financial accounting issues. Using incorrect information on a financial form can lead to negative legal consequences because there are many measures in place to prevent wrongful acts such as fraud. If you are unsure about how to properly fill out the documents you download online, you may want to contact the business that provided the free financial forms. They will have a better understanding of the document(s) and will have a firm grasp of what your next step should be. Seeking out advice from an accounting service can help you manage your finances efficiently and effectively.

An organized financial system will benefit any individual or company. Financial forms help you document and monitor your expenses in a comprehensive way. Creating a solid paper trail will allow you to use your records wisely and plan out future spending and saving. Financial documents also improve the recoverability of your financial information. If you are using paper documents you can simply make copies of them and store them in a safe location. If you are keeping files on a computer you can also make sure they are organized and backed up in your system. Preserving your financial history may be the best way to plan out and achieve future monetary goals. It doesn't matter what your financial situation is. You can make positive strides to move forward, but to do that you will need financial documentation.

Whether you are using paper or digital forms, there are free financial forms available online. Using these financial documents can help you project your expenses and will ultimately help you plan out the future of your business or personal finances.

When Is the Right Time to Require Our Banks to Have More Capital

When Is the Right Time to Require Our Banks to Have More Capital Cushion?

While our Federal Reserve was busy printing money, we also maintained the highest percentage of trade deficit in our nation's history. As we printed money and put it into the economy, within three transactions, those dollars ended up overseas. It was thus inflating other nations, generally those with lower cost products which imported to the United States. Because of all this money flow those economies emerging markets had incredible growth rates along with the inflation which occurs during those periods of GDP growth.

If the Federal Reserve stops printing money these emerging nations will not see that sort of growth rate and just the thought of that will prevent foreign direct investment from flowing into those countries, along with a flight to safety of what is already there. Where might all the smart money go you ask? Most likely it will come here to United States, and that means much of it will end up in our Banks and investment funds. When our Banks have lots of money, they make more loans, and when the investment funds have more they also make more investments.

Unfortunately there aren't that many good borrowers out there with the ability to repay those loans. Easy money would have a catastrophic effect to our future economy as well. Too much investment money chasing too few viable investment pay-off deals, means future losses.

This is how banking crisis start, it starts with easy money, then the non-repayment of loans, that and an economic hiccup, with massive defaults. We don't need to study too many economic case studies to know that. On July 7, 2013 there was an article in the Wall Street Journal titled; "A Capital Catch in New Rule for Too-Big Banks" by David Reilly. When I read that article, I asked myself if "now" July of 2013 is a good time to raise the capital requirements of our banks?

This is a good question, not just today, but it has been a question of Central Bankers since central banking became a viable job title. Let's talk shall we, specifically about what is happening now around the world and with the "quantitative easing" strategy or QE3, some had one called it QE-I or QE-Infinity, in other words printing money forever, as if that strategy alone would save the global economy.

On July 10, 2013 there was another interesting article titled "The Hits Keep Coming for Emerging Markets" by Erin McCarthy, Charles Forelle, and Ian Talley - which showed a graph with the quote; "The IMF Anticipates Slower Growth," which seems to confirm one of the challenges we now have. Well, maybe it is the right time to require banks to have a little more capital cushion, and to be a little more careful of exactly who they lend money too.

Making student loans too easy and allowing frivolous consumers to take out auto loans for which they can't repay, or even a repeat of the easy money during the run-up to the financial housing crisis would be another mistake, and a historical recent history repeat. Please consider all this when you're talking about international banking, central banks, and international economic affairs.

Spend Money and Enjoy Life If You Are Able

Spend Money and Enjoy Life If You Are Able

Most people are not anxious to spend money. It is often too hard to come by so we want to hang on to it. We desire to have savings for a rainy day. Even if the rainy day comes, we do not want to use the money that is saved. Maybe we will go into debt for things we need rather than to use any savings we have.

A certain woman was always worried about money. Although she and her husband lived a fairly comfortable life, she felt that most of the expenses he wanted to make were extravagances beyond their necessities. When he wanted to go out for dinner, she made some excuse that they could eat more cheaply at home. If he suggested taking the family out for ice cream, she would protest that it would cost too much money. If he made the request that they attend an entertainment event or even a movie, she said that they could stay home and watch television without spending extra money. Hence, life was not particularly enjoyable. Then he died suddenly, and she regretted that she had not agreed to go out when he made the suggestions. He was no longer there so that they could do any fun things together.

It is not necessary to spend money excessively and to be unwise in expenditures. However, it is possible to budget some fun activities into one's life. Spending money is not a bad thing if it helps a person to enjoy life and have a healthy perspective. Waiting for retirement to enjoy life is not smart.

If the good health a person experiences suddenly becomes a thing of the past due to an accident or unexpected illness, the chance for spending a little money to enjoy the pleasures of life may be gone.

Remember that you may be helping someone else when you do spend money. It is bringing income and employment to another person. It is providing the means whereby someone else may be able to enjoy life as well.

Saving a portion of one's income is a good thing, and it is healthy to have a nest egg set aside for any emergency which may arise. Being wise in spending and using a budget may help people to manage their money to allow for some of the better things in life. Perhaps it would take earning some extra money to feel comfortable enough to spend on supposed luxuries. This can be done in a variety of ways such as with a home based business, selling things a person does not need, or working a part-time job.

Life goes by too quickly to let it be drudgery without some fun mixed in to the daily grind. It is said that a person who enjoys his work does not really have to work because it is a pleasure to spend time doing what he does. Using one's resources wisely is an important aspect of a good life.

Gold Rush Or Rush To Gold?

Gold Rush Or Rush To Gold?

Governor Rick Perry wants to bring the state's gold reserves back from a New York vault to Texas.

And it's looking like he has the legislative support needed to get it done. Rep. Giovanni Capriglione, of Texas, is ready to propose a bill that would establish a Texas Bullion Depository, a state bank to house the gold owned by the University of Texas, stored by the Federal Reserve and currently valued at one billion dollars.

Some Republicans worked on a similar bill last session, but it was never filed and was not able to make it any further. Ron Paul, the former Texas congressman, has raised concerns about the safety of the states gold supplies that resides in New York.

"If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible; Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve." The former congressman stated.

Governor Perry argued that the state is as capable as the Federal Reserve of safeguarding Texas' physical gold. "If we own it," Perry said, "I will suggest to you that that's not someone else's determination whether we can take possession of it back or not."

Capriglione said he was at a Tea Party event in Tarrant County this year where Perry spoke about the state's gold investments as an economic development tool. Since then, he has worked with Perry's office on the bill.

"We don't want just the certificates. We want our gold. And if you're the state of Texas, you should be able to get your gold." the Texas representative said.

The U.S. and many other countries stopped backing their currency with gold decades ago. It was said that this bill is not about putting Texas on its own gold standard. Instead, it would give the state a more financially secure position in the event of a financial crisis.

If for some reason Texas has a problem getting the gold from the vaults in New York, where it is currently being held, they could always sell the gold and repurchase the asset inside Texas state lines. It could be guarded in an area that is no more than twenty square feet, something that is easily achievable.

So, once again as we have noticed with Switzerland, Germany and the list seems to be growing. Countries and now states who own gold, want it in a location that they can get their hands on it if something should happen, or a financial crisis should rear its ugly head again.

The question seems now to be what are all these different organizations, countries and now states looking at that tells them that are better off acting now, instead of waiting. And why would a state that does not have to deal with the worry of their gold supply being outside of the country feel so strong that it is not even safe unless it is in the borders of their own state. An answer to a question that may not be available to us until we get further down the road.

Divide Your IRA Into Separate Accounts - One For Each Beneficiary

Divide Your IRA Into Separate Accounts - One For Each Beneficiary

If you're considering assigning multiple beneficiaries to your IRA account, watch out how the IRA beneficiary distribution rules operate. Here's an approach to make sure your beneficiaries get what you want to give them after you pass away.

Nonspouse beneficiaries who receive your IRA money are obliged to take money out of it under some particular distribution schedule; they can take it out faster than that schedule but not slower -and that's the issue...

Generally, it's best to setup the slowest distribution schedule for your beneficiary and that means the beneficiary should taking it out under a distribution schedule based on his own life expectancy. Though the beneficiary can't contribute to that IRA to make it grow, minimizing his distribution rate from it will allow it to compound over a longer time. That way he can ultimately receive more from you. With that approach in mind, let's look at beneficiary designation options.

*The case of no IRA beneficiary designation on your IRA:

If you designate no beneficiary on your IRA beneficiary form - or just yourself, then it will go through probate of your estate; otherwise, it will avoid probate. Probate significantly increases the distribution rate of its assigned beneficiaries. Here's how...

If it goes through probate, your heirs for your IRA are assigned by the probate process and can't take distributions from it based on their individual life expectancies. They must take distributions based on whether or not you've turned 701/2 and begun taking your minimum required distributions (MRDs).

If you die before 701/2, your heirs must withdraw all of their assigned IRA money within five years after you die. If, you die after 701/2, they have to take their distributions based on your remaining life expectancy which is probably a lot shorter than theirs. So be sure you designate a beneficiary on your IRA form so it avoids probate to begin with.

*Multiple beneficiary designations on your IRA:

If you leave several beneficiaries designated on your only IRA account, each beneficiary must take his share of the distributions based on the life expectancy of the oldest beneficiary. If they're all about the same age, then distribution rate will be about the same so it really doesn't matter if you maintain multiple beneficiaries. But if one beneficiary is your 68 year old sister, while the others are your young nephews or nieces, then they're all required to take distributions over a your sister's remaining life expectancy- and that's significantly shorter than the life expectancy of all those nephews and nieces. That's a disadvantage to those young people. So, here's the remedy for them...

*Designate one beneficiary per IRA account:

If you have only one beneficiary, he has the option of taking his distribution over his life expectancy. So, if you have multiple beneficiaries you'd like to leave IRA account money to, then consider splitting your IRA into separate IRA accounts - one each beneficiary.

Splitting up the accounts not only allows you to give each beneficiary the longest distribution schedule for him, but also allows you to allot how much each beneficiary will get based on how much you leave in each account. Advise them to have 'their' inherited IRA renamed as a beneficiary account in 'your name' for the benefit of 'his name'. And remember, if they always can take out their IRA money from you faster than its assigned distribution rate.

Competition in Australian Banking Industry, or Lack of It

Competition in Australian Banking Industry, or Lack of It

As you might know, there are 4 major Banks in Australia, Australia and New Zealand Bank (ANZ), National Australian Bank (NAB), Commonwealth Bank (CBA), and Westpac, that dominate Australian Banking sector. At the end of 2010, major banks accounted for 74% of resident assets, market share. CBA alone generated over 6 billion dollars in net profit after tax in 2011, which is astonishing if you consider the amount of Australian population. It is more than GDP of 58 countries.

The 4 big banks have dominated the banking industry for generations, but before the GFC, things were a bit different; small lenders had access to cheap finance options, which kept the competition alive, but as soon as the GFC hit, the cost of finance, especially for small players have increased dramatically, which gave major banks take full control. Another factor that played an important role in monopolizing banking was more regulatory burden that were imposed by government, in times of GFC. This allowed Big banks not only capture larger market share as a result, but also take over emerging (promising) banks, such as St George, Bankwest, Bank of Melbourne, Bank of South Australia and others, which they have successfully accomplished and called it Consolidation of Banks.

Government is under pressure to promote a healthy competition in Banking that is vital if Australia is to have sustainable banking industry. Monopoly not only leads to stagnant industry, but also results in worse outcomes for consumers. The Government, however, is finding it hard to come up with review and an action plan to promote competition, blaming the times of continuing economic troubles in the world. The Coalition plans to introduce more competition in the banking market and has formulated terms of reference for an inquiry if it wins office. But, will it happen, or will it be another unfulfilled promise?

Fortunately, there seems to be a light at the end of the tunnel, with promises from foreign banks and other financial institutions to enter Australian market. (there is some presence of foreign financial institutions, but extremely small; only 44 foreign banks are represented in Australia., which currently enjoy mere 9% of market share) There are also talks of companies such as Apple and Google that already entered financial services penetrate the Australian market that gives us a hope of a better future with more competition in Australia.

Moreover, consumers now can compare their rates online or go to a local broker, to find the best deal. However, I have learnt that naturally, people are simply lazy and most of us would not shop around to find the best rate in the market, but go with what our friend/family has recommended. On the other hand, this is changing, but at a very slow rate that is costing us in unnecessary interest payments, which we could have avoided if we switched to a better deal. To help speed this process, I have come up with a Mobile Application that can compare live rates for all lenders, which will make the comparing much easier, and less time consuming. Check it out and support the cause if you can here.

Keeping Your Family Members From Contacting A Litigation Attorney Once
You're Gone

Keeping Your Family Members From Contacting A Litigation Attorney Once You're Gone

If you're working with an estate planning lawyer, your goal is likely to make things as peaceful as possible for your family members after you die. If there's confusion regarding your legal documents, your loved ones could spend their time fighting amongst themselves instead of comforting each other. To help eliminate the need for a litigation attorney, consider using these tips.

Litigation Attorney Tip #1: Treat All Beneficiaries As Equals

Beneficiaries squabble when they feel as if they're not being treated fairly. If you have two children who have very different income levels, it may seem like a good idea to leave more to the child that struggles more, but this could cause plenty of hurt feelings. Instead treat everyone the same, including families with children. By giving each family the same amount, you'll eliminate hurt feelings and strife.

Litigation Attorney Tip #2: Don't Let Your Loved Ones Be Surprised

If someone is surprised at the contents of your will, they could be tempted to contest it. Instead of allowing your wishes to be a surprise upon your death, make sure that you explain what's inside your legal documents. Additionally, while your lawyer should keep a copy of your documents, it's not a bad idea to give one to all your beneficiaries. This can let them all know what will happen with your assets, but it can also spell out what you want to happen in case you're unable to make medical decisions on your own. This helps ensure that your family members won't argue over medical decisions when you're unable to speak for yourself.

Litigation Attorney Tip #3: Include A Clause To Keep Beneficiaries From Contesting

Anyone can contest a will and some of your beneficiaries might be tempted to do just this if they feel that they were slighted. Instead of leaving this to chance, ask your lawyer to include a no contest clause. This is a very simple clause that states anyone who contests his or her benefits, receives nothing. If a beneficiary wants to contest their inheritance, their portion is forfeited.

Litigation Attorney Tip #4: Draw Up A Will Before You Need It

It's vital that you have your documents drawn up well before you need them. Illness and accidents can happen at any time, leaving you incapacitated. This is why you should complete your legal documents while you're still young and healthy. Ensuring that you're mentally and physically healthy also ensures that your will can't be contested for not being "of sound mind." If you're worried that there may be some questions about your mental health, consider paying a visit to your doctor before you visit your lawyer and getting a clean bill of health in writing.

There may be situations that do call for a lawyer to contest a will. If you feel like your parent or grandparent was taken advantage of, contact a litigation attorney for help. He or she will be able to go over the documents with you to help see if you have a chance of contesting the will in court.

The Differences Between Wills And Trusts

The Differences Between Wills And Trusts

The differences between wills and trusts are dramatic in terms of probate avoidance. Probate is where a California court supervises the distribution of your estate once you pass away. Unfortunately, due to budget cutbacks related to California's recent economic woes, the probate process can easily take two years on average and can cost between 6-8% of your estate's value. For these reasons, many Californians seek to avoid it.

A majority of people come to me without any idea of how a will actually works. They think that in California, having a will will prevent your estate from going into probate, when actually, the opposite is true! By definition, having a will guarantees that your estate will enter probate. The purpose of a will is to to allow a California judge to supervise the administration of your estate and make sure that your will's executor distributes your estate according to the wishes that you put on paper. It tells the probate judge, "upon passing you are to make sure that my executor, X, distributes my estate to my beneficiary, Y." X must now distribute your estate to Y with judicial oversight.

Now compare this to a living trust. A trust is a legal creation that will avoid probate. People die, but legal entities can live forever- just look at the US Constitution! You create a trust during your lifetime and assign all of your valuable assets through its various legal documentation capabilities. The idea is that because Trusts continue indefinitely, if your assets are held in a trust, they will continue being owned by it even after you pass away, and hence avoid probate. During your life you are the manager of the trust (the initial trustee), meaning that if this is a revocable trust, you can go about adding, subtracting, and changing the trust and its property however you wish. Once you pass away, your named successor trustee takes control, and must distribute the trust property according to your trust's terms, and this bypasses probate. The state of California will only involve itself if the beneficiary sues the successor trustee for failing to properly administer the trust.

While it is generally best to utilize a trust to avoid the costly and time-consuming process of probate, there are some situations where it might be better to create and implement a last will and testament that goes through probate court. Everybody is unique and an attorney should review your particular family situation so to help you decide what is best for you. The bottomline is that there are significant and meaningful differences between wills and trusts, these are differences you should consult with a skilled estate planning attorney to determine whether you should seek probate or avoid it based on your specific needs.

Assessing The True Cost of Invoice Factoring

Assessing The True Cost of Invoice Factoring

Invoice factoring is wrongfully considered to be a very expensive form of business financing. Not so. Used properly, factoring is no more expensive than taking payment by credit card or offering special payment terms to customers such as 2/10 Net 30.

The misunderstanding about cost stems from confusing "purchasing" with "borrowing." This is a mistake made by many bankers, accountants and business owners. As a result, they turn away from the usage of a highly efficient - and cost effective - financing tool.

Purchasing vs. Borrowing

A factoring transaction involves the sale of individual invoices as unique and distinct financial instruments. Each invoice has a face amount. Each has a distinct payee (i.e., company obligated to remit payment for product and/or service). Every factoring transaction is discrete. It involves a separate, uniquely identifiable financial instrument (invoice) purchased at an agreed upon price. That price is determined by an agreed upon discount rate.

For example, if the factoring agreement calls for a 3% discount rate, a $100,000 invoice would be purchased for $97,000. If a company factored a $100,000 invoice each month for 12 months, they would have consummated $1,200,000 in business with their customers. At a 3% discount, they will have a business expense of $36,000 and net $1,164,000.

Borrowing is different. It is similar to renting a vehicle. The rental agreement grants you the right to use the vehicle but you must return it at the end of the agreed upon period and pay for the privilege of the usage. In this case, what is being rented is money. Businesses frequently rent money in an effort to accomplish the same objective as factoring. That is, to manage cash flow. A bank will provide a certain volume of funds for a period of time at a specific interest rate. Those funds may be granted in a lump sum or through a line of credit where funds are accessed and returned, accessed and returned, etc.

If the company borrows $1,200,000 at 3% APR, at the end of 12 months they will have a business expense of $36,000. In other words, whether the company borrows $1.2 million or factors $1.2 million, their cost of money will be the same.

Where People Go Wrong

Most people do not make the distinction between purchasing and borrowing. They will look at a factoring transaction and see the 3% discount rate on a month's invoices and think: "Oh my! Three percent per month? Why that's 36% interest!"

What's occurred is the individual has attempted to change a discount purchase rate into an annual percentage rate. They are not the same. The discount rate in factoring is applied to discrete transactions. The annual percentage rate in borrowing is applied to the amount of funds borrowed. The two are not interchangeable.

A Better Comparison

At its most basic level, factoring is a means by which a business owner collects immediate payment from customers who either cannot or would rather not pay with cash.

In the world of consumer-based businesses this is done by accepting credit card payment. Here's what happens:

  • A consumer uses a credit card
  • The merchant receives funds from the credit card company
  • The credit card company charges the merchant a fee for doing so
  • The credit card company subsequently bills the consumer
  • The consumer then pays the credit card company at some point in the future.

This is a form of factoring.

A Comparison to Credit Card Payment

In the commercial business world, it is possible that a company will accept credit card payment for its product or service. However, when individual transactions are in the tens of thousands, hundreds of thousands or millions of dollars the use of a credit card is not practical. Add to that the fact that most commercial customers refuse to pay cash for a product or service while demanding payment terms and you can have a cash flow problem. Consequently, the business owner needs to look for other options if he wants to get paid quickly.

Accelerated payment can be accomplished by invoice factoring. As with credit card purchases, there are three parties:

  1. The buyer
  2. The seller
  3. The financing company

The factoring process is very similar to the credit card payment process:

  • The buyer makes a purchase
  • The seller invoices the buyer
  • The financing company advances cash to the seller
  • The finance company charges a fee
  • The buyer sends payment to the financing company based on the seller's payment terms

Price Comparison

For consumer merchants, credit card fees can range from 2% to 5%. For commercial businesses, factoring fees can range from 2% to 5%.


Factoring is erroneously considered an "expensive" solution primarily because people use the wrong model for determining cost. They attempt to apply "borrowing" calculations to a "purchase" activity. Factoring is more aptly compared to accepting credit card payment. Used properly, invoice factoring is a reasonable and cost effective solution to a business cash flow problem.

Reducing Credit Card Debt - Why Is It Important For Attaining a Good
Financial Position?

Reducing Credit Card Debt - Why Is It Important For Attaining a Good Financial Position?

The world is facing economic uncertainty and in this unstable state, it becomes highly important to reach for strong financial position. One effective way to make it possible is by reducing credit card debt. For this purpose, you will have to acquire structured and disciplined approach. Through this attitude, you can come out of your credit card debt whether you have to pay $4,000 or $40,000. All you need to do is to follow some of the workable tips to become financially sound. Follow some of the smart strategies and get rid off your debt in quick time. Have a look.

Focus on one card
If you are having multiple cards, it's wise to get switch over to just one card. Carrying balance on all the cards will take a long time to dig out debts. Your progress should be in the direction of debt reduction and not debt elevation.

Contact your creditor for reduced interest rates
You need to approach your creditor for asking low interest rates. Through a simple phone call, the issuer will grant you reduced rate. The only requirement is to have potential credit and good rapport with the issuer.

In out of money state, go for minimum monthly payment
In case you are going through a very bad financial state, its better to make minimum payment each month. Interest is charged by the card issuers on a daily basis. So, the best idea is to make payments as soon as possible for reducing the balance.

Take the assistance of financial counselor
Well, taking the professional help will also work in reducing credit card debt. This can include help from credit counselor or an attorney. A financial counselor takes all the personal finances of a person into account for establishing firm financial foundation. As many scams have been observed in this regard, it's wise to explore for number of companies for positive results. A debt relief company is surely a good endeavor to release the burden of debt off your shoulders.

This is an old concept, but will prove quite effective in clearing your debts. You can settle all your debts by adopting this technique. Yes, by making a complete record of your expenses and savings, you can take a step ahead towards reducing your debt. If you have all the records in front of your eyes, you will not face any issue while clearing your debt.

Credit Card Debt settlement
This is also a competent method to reduce credit card debt. In this settlement, the debtor associate with a debt relief company. Debtors by avoiding making payment to creditors, start depositing it in special bank accounts which are designated for it. This negotiation is acquired by many people in the present scenario.

In a nutshell, reducing credit card debt is an essential thing to do as world is facing financial destruction. The above tips will surely boost you up for clearing all your debts as quickly as possible, so as to obtain financial stability.

What Social Security Can Do For You

What Social Security Can Do For You

When we're busy living our lives, earning a living, raising and educating children and possibly struggling - like so many people - with the challenge of bad credit, we do not spend a sufficient amount of time thinking about and planning for retirement. It seems so distant and remote, and many people engage in 'wishful thinking' when it comes to retirement planning, simply assuming they will somehow find a way to make it all work. Most people vastly underestimate how much money they will need and do not save enough money for retirement and if you suffer with poor credit it's even worse.

The Reason Why Social Security Was Created

That's where Social Security comes in. Despite the ongoing debate and controversy about the program, there is little doubt that it has accomplished the task set out for it when enacted in 1935: It provides a minimum income for people in their old age to prevent them from slipping into abject poverty if they have no other sources of income. The word 'minimum' must be kept in mind; the average monthly benefit is currently $1230.50, or slightly less than $15,000 a year. Under perfect circumstances, however, you could receive substantially more - and no matter where your benefit ends up, there is no doubt that any income is incredibly useful when you're no longer working.

Your Social Security Benefits Depends On How Long You Pay The Fund

Social Security is not free money - you are paying into the fund in the form of payroll taxes right now. The level of benefit you eventually enjoy depends on how long you pay into the fund, and when you claim your benefits. You can legally claim a benefit when you turn 62, but your benefit will be higher if you wait until the official retirement age of 66, and higher still if you wait until you're 70. If you're married and both partners pay into the system from the age of 21 and wait until they are 70 to collect, the maximum possible annual benefit as of 2012 is $78,384. That's not exactly a fortune, but it's certainly enough to keep you out of the homeless shelter.

So when planning your own retirement, it's important to do two things in addition to managing portfolios and planning future expenses: First, repair your credit profile if you've gone astray. Second, learn how you can benefit from Social Security.

Working in the Construction Industry? Try Security of Payment

Working in the Construction Industry? Try Security of Payment

No matter where you work and what you work as, there are going to be some sought of payment disputes that you come across. However, the construction industry sees the worst disputes and the amounts can run into thousands and at times even millions of dollars. The main reason as to why this happens in the construction industry is because there are plenty of different companies working together to help achieve the final goal.

And just like in any other field with demand comes supply. Therefore, here too there are plenty of schemes that are come into the picture in order to prevent such malpractices. Security of payment was therefore recently introduced to help people solve their financial problems quickly and to prevent massive losses to both parties and save them time from fighting it out in court.

Things have changed

Before all these cases used to take a really long time and you would have to work a lot and spend a lot as well to fight them in court. It's not just money that was wasted but your time as well. And in most cases you wouldn't get your money back.

Therefore just by using security of payment procedures and schemes you would be able to get rid of any kind of issue that props up and come to a settlement with the other party involved through adjudication.

So whether you're in the construction industry or work in some other field, if security of payment is an option you should definitely sign up for it even if you have to pay a bit each year. You wouldn't know when it could come in handy and save you from massive losses.

Just file a claim and get your cash

Before you could even think about approaching the officials involved and claiming cash via adjudication you would first need to go ahead and sign up for a payment sheet. Once this is done, the two parties that are involved i.e. the claimants and respondents would need to either sign and settle the issue off or proceed further for a hearing.

But, remember that for any of these issues to even be considered you would need to file the papers within a stipulated time frame. This time frame would have to be decided by the parties involved.

Of course you're going to have to fight it out here as well, but it's much quicker and safer too.

Get To Know Some Time And Space Saving Techniques

Get To Know Some Time And Space Saving Techniques

In this world, we need to be able to have good earnings so that we can have a good life.

"Never spend your money before you have it." -- Thomas Jefferson

There are certain things that we need every day. Food is a basic necessity. We cannot survive without food. When you met basic necessities, you can well be assured that your life is well kept. Yet, there are other people that do not have all these things. There resources and income cannot meet the desired monthly expenditures. But, this is not the case for all. Some people can have savings. This is a terrific way of letting people have their necessities while still having extra money for other wants and needs. Saving does not only entail resources like money. You can also try saving other necessities like time and space. Here are some simple time and space techniques:

When you are living in a limited space, you can manipulate your living space so that you can attain the maximum space available. Trouble with most people is that they buy and buy appliances and things for their house but are not considering the space allocation. One thing you can try is looking at your space and measuring it. When you have done that, you can know go shopping for your appliances and furniture.You should also consider the number of people in your house and the possible number of people that could constantly visit your house. If you think that you will not be holding a number of parties, then a four seat couch would probably be good.The dining table can also be manipulated. If you have only your husband or wife and two children, then a 4 seat table would do.Why buy a humongous dining table when other seats would not be occupied.

"Beware of little expenses; a small leak will sink a great ship." - Benjamin Franklin

Do not be tempted to buy luxurious and extravagant appliances and household furniture if you do not have enough money. Remember, savings are important for emergency purposes. As much as possible, way on your expenses.

"The safest way to double your money is to fold it over and put it in your pocket." -- Kin Hubbard

People also have the constant dilemma of not having enough time. Saving time is an essential element when you have a lot of things going on in your life. For instance, when you are at work, limit your time when having short chitchats and fondling on magazines and books. If you are at work, work.

When you are at work every single day, you need to have a schedule. List down all the things that you want to accomplish on that specific day; your goals. Then, when you are done with the task, you can remove this from your list. In doing so, you can keep track of your accomplishments for the day.

Make An Error-Free Decision When Hunting For Insurance Brokers

Make An Error-Free Decision When Hunting For Insurance Brokers

We've heard plenty about the importance of insurance but who can you trust to recommend the best policies? Not everyone has your best interests at heart and something as important as insurance can't be left to chance.

You can choose to go with a broker or an agent. What matters is that they work on your behalf to get you the best insurance coverage. With more people becoming aware of the importance of being protected against lawsuits, natural calamities and theft, the number of insurance companies has mushroomed in recent years. This means the quest to sift the good from the bad has become even more important.

Expertise is an absolute must as is certification and license. Insurance has legal ramifications so if your agent or broker doesn't help you understand what each type of insurance can do for you or if he doesn't tell you how a particular choice can spell doom, you'll end up paying a hefty price. In fact, such is the important of insurance coverage that even fledgling businesses think to get covered.

For some, finding a good broker or agent means finding policies with the lowest cost and going with the professional who gave them that quote. They don't bother to find out if the coverage actually benefits them as long as money can be saved. This is a wrong and potentially disastrous way to go about agent-hunting because saving money now does not guarantee saving money later. What should be done instead is to get hold of an agent with lots of expertise and then get him to find coverage.

Depending on what you need insurance for, seek referrals from sources who deal in that field. For example, if it's health insurance you need, speak to a healthcare provider. They have connections with related insurance companies and will be able to point you in the right direction.

As for qualifications, all insurance brokers must be licensed by the Australian Securities and Investments Commission and accredited by NIBA (National Insurance Brokers Association). You may choose to deal directly with the insurance company too but that would mean doing the legwork yourself. As you probably don't have the time or the mind to take on the job yourself, it's far easier to rely on a professional. Just stay up-to-date on the process and understand the finer details of different types of coverage.

When interviewing brokers or agents, certain questions can reveal how competent they are. Queries about their track record in the past five years, how satisfied their customers are, their reputation (not only that of the providers they work for), and the financial foundation of the company represented are important. Be aware that there'll be sales pitches tossed at you so know when someone's making tall claims by running a check on the internet and speaking with people who've used their services before.

There are numerous insurance providers and even more brokers that it's not difficult to feel swamped. Not having much idea about insurance as a whole only makes it trickier. The guidelines outlined above will, hopefully, serve to remove some of the burden you feel when 'shopping' for an insurance agent and may guarantee you find someone you can completely trust.

How To Monetize Your Accounts Receivable

How To Monetize Your Accounts Receivable

One of the primary reasons that most businesses fail in the first 2 years is cashflow management or more precisely the lack of cashflow. Your business may have a large number of orders on the books but if your clients take 45,60,90 or even 120 days to pay it could put your entire operation in jeopardy.

In the past what a business owner would do is go to their local bank and ask for a line of credit to tide them over until their clients paid. While most banks did provide this funding all of that came to a screeching halt in 2008 when the banking sector collapsed and even Fortune 500 companies had a hard time accessing working capital to fund their operations.

If you have these accounts receivable that are mounting and no cash to work with there is a distinct possibility that your growth could stop entirely. There is hope though in the form of accounts receivables financing.

This type of financing sometimes referred to as "factoring" will let you assign the ownership to an accounts receivable factoring company in exchange for cash upfront. While each of these companies have their own respective niches they offer a similar service.

You should have no issues finding these factoring companies by going online and performing a simple search. What you need to look for is transparency in the company, this is a business relationship you are forming and need to be sure that the finance company is doing everything by the book.

Now that you have created a list of prospective firms you must look at the rates they are charging for their facilities. There will be a range that could be from 2-50% depending on what is being financed. What makes this type of loan different from the ones at your local bank is your credit does not matter at all. The accounts receivable factoring company is going to look at the credit worthiness of the organization that has bought goods or services from you. This is truly appealing since the majority of the businesses who need loans are relatively new and do not have an established track record.

Once the accounts receivable factoring company has completed their due diligence on the credit worthiness of the company that owes money on the invoice they will make an offer to provide a loan. This cash can be deposited within 24 hours if you accept the terms. As mentioned earlier you want to find a firm that is very transparent with their fee structure so you know exactly what you are getting for your money. After you accept the terms the cash is deposited into your account to do whatever you wish and the lender will collect payment discretely from your clients.

Companies need access to this working capital and without this accounts receivables financing a considerable number of businesses would fail.

9 Benefits of Companies Outsourcing Their CFO

9 Benefits of Companies Outsourcing Their CFO

All businesses need financial consulting, however not every business can afford to hire a full-time Chief Financial Officer (CFO). As a result, small and medium-sized businesses are increasingly turning to expert outsourced CFO services. Here's how an outsourced financial consultant can benefit your company:

1. Cost Reduction

Outsourcing a qualified accounting professional to handle your CFO services can help your company save a lot of money. You'll be getting expert services without having to add additional personnel and technological resources. This can help reduce your company's overall operation costs.

2. Quality of Services

With an outsourced CFO, you can be assured of quality services because he is a professional who has worked with different industries, and understands what works across the board.

3. Allows Better Focus

It's very important for businesses, especially small ones, to concentrate on their core competency, and let professionals handle what they don't understand. If dealing with the financial aspect of your business isn't your specialty, outsourcing CFO services can help to concentrate more on what you know best.

4. Overall Efficiency

When it comes to meeting deadlines, as well as other requirements of different projects, an outsourced CFO is generally more efficient compared to a hired one. This is because he has experience with almost all financial situations, and you can only expect the best from him.

5. Assistance in Getting Financing

Bookkeepers do a wonderful job, but it's usually an outsourced Chief Financial Officer (who is a certified public accountant), who has to present suitable financial statements to a lending body for financial approval. With his experience, the CFO will be able to identify the strengths and weaknesses in your company's income statement and balance sheet, and can equip you with the financial information that the bank may need. Many times, such CFOs will introduce your company to banking sources that match its lending requirements, and thereafter, assist you throughout the financing process.

6. Developing Budgets

Every business, regardless of size requires a revenue and expense management plan in order to successfully grow. An outsourced CFO can help you as the business owner to develop a model that demonstrates what needs to be done to attain a desired gross or net profit, or meet a sales goal.

Every company owner can attest to the fact that without a budget, it's difficult to run the business efficiently, leave alone managing it to become profitable. Therefore, the CFO can work with you to come up with plans that can help you identify the sales level that should be reached to attain break-even profitability, or know when it's sensible to hire additional employees.

7. Managing Cash

Small companies would love to be able to have sufficient cash to run their everyday operations, however, most of them lack the tool to help them forecast their liquidity needs. When you outsource a CFO, he can build a model that forecasts your cash-flow requirements both in the short and long term. In addition, he'll be able to help your company in prioritizing its cash-flow needs.

8. Assist in Complying with Tax Regulations

Several business owners usually disregard the consequences of failing to pay taxes to the federal and local government on time and in full. In addition, they pay the wrong amount of taxes because of wrongly entered transactions in the ledger. Accurate tax returns can't be prepared without proper financial statements.

Outsourcing CFOs can come in very handy for such businesses because they'll ensure that financial statements are prepared accurately, and in a timely manner. Consequently, they'll be able to assist you in navigating and complying with various tax regulations.

9. Upgrading Accounting Software

An outsourced CFO is familiar with a huge variety of software packages. As a result, he can weigh the gains of getting more powerful accounting software against the package's cost, in order to know if the purchase makes sense. However, that basic software you have in your office may not suit every business type; certain companies for instance, those that deal with manufacturing, have significant inventory management requirements, and need more sophisticated software. An outsourced CFO can offer you very valuable advice regarding which accounting software is right for your business.

As you've seen above, companies have a lot to gain from outsourcing CFO services, such as cost reduction, efficient services and cash management. Besides, you'll get more time to concentrate in the day-to-day running of your business.

An Approach To Interest-Only Investing For Your Living Expenses

An Approach To Interest-Only Investing For Your Living Expenses

During retirement some people want to restrict their income only to interest income from their income-based investments. They like the security of principal that such investments have. So how might they arrange their portfolio to make this feasible over a long retirement horizon?

What such interest-based investors want to avoid is 'dipping into principal'. But preserving principal is done in two ways.

First way to preserve principle:

Here, preserving principal means not withdrawing it - just taking its interest earnings. Several investments offer interest-only payments. Examples are:

* Certificates of Deposit (CDs)

* Deferred fixed annuities, and

* High quality bonds (ideally near maturity)

These are all very secure investments. All interest taken is taxed as income.

You can get CDs with terms from a few months up to 5 years. As an example, you can buy a 6 month CD, wait the term, and then take its earnings and reinvest the principal again.

You can find deferred fixed annuities that allow you to withdraw up to 10% without incurring a surrender penalty (if you're over 591/2). Just take only the interest earned - which will be under 10%.

Near term bonds pay coupon interest for your use, and at maturity pay their face value which you can reinvest again.

Ideally you should compile a mixture of these investments for your 'interest-only' portfolio. With enough principal, you can consider laddering each of these investments to help preserve higher interest payments over long term investing.

The second way of preserving principal:

Preserving principal also means preserving the purchasing power of that principal. Inflation erodes the purchasing of a dollar and therefore will erode the purchasing power of your dollar-denominated investment principal. Inflation requires your principal, from which you're earning interest, to increase in terms of the number of dollars that make it up. And if your principal increases - and interest rates remain the same - the amount of interest earnings you withdraw will maintain its previous purchasing power too.

So, for emphasis, under comparable interest rates in the future, you'll need more principal to produce larger 'interest' withdrawals to cover the same living expenses to offset inflation's effect. It's those living expenses that will increase with inflation.

They only way to make your principal grow is by creating an 'equity-growing' portfolio. Such a portfolio is invested to grow as fast, or faster, than inflation. Hopefully, you'll be able to grow it sufficiently to offset inflation's deterioration of the principal of your 'interest-only' portfolio. Then every few years you can transfer some of your equity-growing' portfolio to increase your interest-only principal to offset inflation's damage to its purchasing power.

A mixed approach to growing your principal:

Of course, you could simply not withdraw all your interest from your interest-only investments and leave some to increase the principal over time. But then you're reducing your income for living expenses now in hope that in the future you can take the same fraction of interest earnings from a bigger principal amount. That's an approach to offsetting inflations purchasing power's deterioration on your interest income.

But this approach makes you seek higher interest rates to offset your fractional take on your earnings - and that may undermine the risk level of your interest earning principal. Breaking your money into two portfolios each with its complementary objectives - one for absolute security, the other for investment growth - keeps the risk allocated and recognized where it exists.

Save Tax With A Furnished Holiday Home

Save Tax With A Furnished Holiday Home

Owning a second home is an attraction for us all as an investment but also for stable income stream.

Firstly, let us gain an understanding of how a Furnished Holiday Home differs to a normal buy to let property investment:

  • It can be a static mobile home i.e. a "caravan"
  • A purpose built holiday home (we are seeing many more of these sites being built - no tax for tax mitigation)
  • A normal residential property can be bought and then run as a holiday home. Must be fully furnished
  • Must let property for 105 Days
  • Must be available for let for 210 Days
  • Cannot let for longer term lets of more than 155 days during the year
  • Must be in the European Economic Area

Comparing the Tax Benefits

Capital Allowance

The ability to write down depreciation of the assets against income tax

  • Buy to Let: No, only running expenses
  • Furnished Holiday Let: Yes. This is attractive as an additional expense when capital spend/make improvement you make plus normal running expenses

Inheritance Tax

The ability to use Business Property Relief (BPR) i.e. pass on the asset free of inheritance tax.

  • Buy to Let: Inheritance Tax may be payable as it is not a business
  • Furnished Holiday Let: It is a business asset, can claim 100% BPR i.e. No inheritance tax payable

Income Tax (CGT)

Profits on rents after running expenses are taxable

  • Buy to Let: Yes, payable
  • Furnished Holiday Let: Yes, payable

Capital Gains Tax

Payable on both types of property (after allowances).

  • Buy to let: Yes, payable at 18% (basic rate taxpayers) and 28% (higher rate tax payers)
  • Furnished Holiday Let: May benefit from Entrepreneurs' Relief when selling your holiday let as it is as a business asset. CGT on business assets is 10% for the first £1m of gains rather than 18%-28%.
  • Roll-over Relief: May be able sell your furnished holiday home and roll over capital gains into another "business" furnished holiday let and not pay capital gains tax

Council Tax

Buy to let: Tenant will pay

Furnished Holiday Let: off settable as an expense apart from periods of longer term let

What to watch out for

In a recent test case Pawson (deceased) v HMRC [2012], HMRC attempted to block 100% business property relief on the property claiming that no service was being provided by Pawson. In short, it was not being run as a service business holiday home. A Tribunal overruled HMRC sighting the regular turnover of guests, on-going services for cleaning, bedclothes, television, telephone etc. in the cottage made it a holiday business allowing BPR and not an investment subject to IHT.

Our view

A great opportunity to save tax and own a holiday property. Make sure it is commercial service for paying guests, brochure, on holiday let websites, local guide in the property, provide towels, water, etc.

You can stay there yourself for long periods as well as letting to your family and friends (at market rate though).

Worth considering as an alternative to buy to let.

Definitely worth considering for efficient inheritance tax planning.

Civil Liability of Debt Collectors - What This Liability Includes

Civil Liability of Debt Collectors - What This Liability Includes

Okay, so we have all, or at least almost all of us have been in this situation: As soon as you turn twenty one to apply for a car loan or, you decide that you want to share your passion for fashion to the world and you apply for a bank loan, and you get approved. Upon approval, you will use the funds received for your intended purpose which was for that dream car, or to open your own shopping boutique.

That feeling of excitement and happiness rushing all over makes you feel on top of the world because you are getting that extra push knowing that someone is giving you a chance to achieve your goals. You then are directed to read the fine print which includes the stipulations and binding agreements you are held to for the term of the loan. When you're first, second and third payments come in and you are paying them as scheduled things are all good and well. But then, the fourth payment comes in at a time when you have to pay say three, or even four bills in conjunction to that loan bill.

After coming to this conclusion, you then call your loan representative telling him or her that you will be a bit late on your payment. The representative then refreshes your mind to that agreement that you signed on a clause that specifically states that all payments must be made on time in accordance to the contract that the consumer (you) signed; or else there will be a high interest amount that must be paid on top of the debt that is already owed. Now what? That deal that you made has a great possibility of lowering your credit score, which in result will make it difficult for you to get any more loans; this in addition to a snowball effect of other misfortunes.

Financial situations such as this and many more are why we have a myriad of laws and acts in place to protect someone from being adversely affected from the outcome of consumer debt. Now, let it be known that these laws and acts are not in place for those who choose to out of wrong reason not pay their bills. As many of us who believes that many of the laws that are intact are there to work against us, truth being, these laws are in place to work for us.

A prime example of such law and acts that are set in place for a financial situation regarding the civil liability of debt collectors comes from the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. This act impends civil liability on debt collectors for certain debt collection practices that are deemed illegal or prohibited. A debt collector who fails to abide by any part of the Act is to be held responsible for actual damages, costs, reasonable attorneys' fees and certain statutory damages set forth in the Act. On the other hand,if a debt collector substantiates their case with proof beyond a reasonable doubt that "The violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error" then the debt collector is not to be held in contempt in any action brought under the Act 15 U.S.C. § 1692k(c).

Congress brought about the FDCPA, or the Fair Debt Collection Practices Act in 1977, 91 Stat. 874. The core intent and goals for this Act being in place was to dispel of any debt collections that some companies may practice in that can be seen as obtrusive. Another goal that the Fair Debt Collection Practices Act is to achieve is to ensure that debt collectors who abstain from such practices are not disadvantaged in a competitive mannerism, and to promote consistent state action to which is to protect consumers 15 U. S. C. §1692(e). The Act regulates interactions between consumer debtors and "debt collector[s]," defined to include any person who "regularly collects... debts owed or due or asserted to be owed or due another" §§1692a (5), (6). Among all other things, the Act "forbids debt collectors from making false claims or accounts as to a debt's character, amount, or legal status, §1692e (2) (A); communicating with consumers at an unusual time or place" likely to be inconvenient to the consumer". §1692c (a) (1); or using obscene or profane language or violence or the threat thereof, §§1692 d (1), (2)". (Heintz v. Jenkins, 514 U.S. 291, 292-293).

This is just a snippet of the laws that Americans have on their side when their debt is getting too out of hand for them to handle. This is not a get out of jail free pass to wipe the slate clear of all debts that one has accrued.

There are forms of action for if one was to get into a financial situation such as this and many more. Getting a loan to launch your dreams can be an amazing thing with risks, but rewards as well.Your job is to do the research, ask all of the questions you need answered, or to take any other measures to be informed to protect yourself from being nipped in the behind from the debt shark. Ask now and you will know no worries of being in debt.

How to Track Expenses and Better Communicate Financial Decisions?

How to Track Expenses and Better Communicate Financial Decisions?

With the economy still in a bad shape and savings rate taking a terrible blow, it is important to know the cash flow position of a company. With the profusion of smart phones in the country there's a huge deluge of apps of different kinds. Some of these apps cater to money management; they work as expense manager and also help in financial planning. It is therefore important that we make use of these apps in order to optimize our cash flow. We bring to you a compilation.

Money management apps: They can help you to manage your money. Many money management apps are currently free and open source. This is important as it will help you handle your money better. It also generates pie-charts which help users in formulating an opinion as to which expenses were necessary and which were wasteful and frivolous. It is also important to note the usage of money management apps also helps you to compile all the financial information in one app, i.e. your multiple accounts associated cards can all be stored in a centralized location.

Money Management app for android: These apps provide for and take care of all the accounting needs right from personal accounting of managing your savings account to alerting when important deposits mature. But the more advanced money management apps for android can also be used by professionals for formulation of budget, creating balance sheets and P/L statements. They can also be used for certification of accounts to pass it over to the shareholders. Using Android apps means you use secure Google SSL connections which give unmatched security of data.

Expense Manager app: These apps unlike the above mentioned apps focus only on compiling data related to the expenses. It therefore generates weekly, monthly and annual reports of the same and also makes the user aware of whether he is breaching set expenses limits. This app also produces interactive bar and pie charts to ensure that the data is presented to user in the best possible way.

Financial Planning app: These are the most advanced apps as they go beyond just offering solutions for earning and expenses, but manage the entire financial department of your house, some of the notable features include income tax, handling of cash reserves, Life insurances, Investment portfolio, and total debt which includes (housing and personal) Investment portfolio, and total debt which includes (housing and personal).

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